Digital Asset Inflow Recovers $862 Million Thanks To Bitcoin ETFs

Key Points:

• Bitcoin ETFs drove an $862 million digital asset inflow last week, led by iShares Bitcoin Trust.
• Ethereum faces SEC scrutiny, prompting a $18.9 million outflow and concerns over ETF approval delays.
• Despite challenges, the Bitcoin ETF surge boosts investor sentiment, with U.S. leading inflows at $897 million.

Last week saw a resurgence in digital asset investment products, particularly highlighted by the rally of Bitcoin Exchange-Traded Funds (ETFs), which bolstered confidence among crypto enthusiasts.

Bitcoin ETFs Propel Digital Asset Inflow

James Butterfill, research director at CoinShares, noted a significant uptick in digital asset inflows, reaching an impressive milestone of $862 million. Leading the charge was the iShares Bitcoin Trust, attracting $617 million in inflows.

In terms of specific asset movements, Bitcoin dominated digital asset inflow with $865 million, while Ethereum experienced an outflow of $18.9 million, attributed to heightened scrutiny from the U.S. Securities and Exchange Commission (SEC) regarding its security status. This regulatory tension has also raised concerns about potential delays in Ethereum ETF approvals.

Fortune reported that the SEC is actively investigating whether Ethereum’s native cryptocurrency, Ether (ETH), should be classified as a security. Companies involved in the probe have disclosed that the SEC is demanding documents and financial records related to their interactions with the Ethereum Foundation, the Swiss-based organization overseeing the blockchain’s governance and development.

Despite Ethereum’s regulatory challenges, the surge in Bitcoin ETFs has revitalized investor sentiment, driving overall inflows into the digital asset sector.

Global Trends Surge Boosts Investor Sentiment

Examining global trends, the United States emerged as the top contributor, with an inflow of $897 million, indicating robust market participation. Conversely, Canada and Switzerland experienced outflows of $20.3 million and $15.6 million, respectively.

Overall, the resurgence in Bitcoin ETFs has injected fresh optimism into the digital asset market, underscoring the growing appeal of cryptocurrencies among investors worldwide.